Dubai: The steel industry in Jebel Ali Free Zone, Jafza, has seen a robust growth of over 20 per cent in 2013, which is more than the rate of industry growth in the UAE.
Steel manufacturers and traders in the Free Zone expect the growth momentum to pickup further in the current fiscal year. The upswing comes on the back of rapid economic development in the region and fast revival of real estate and infrastructure projects in Dubai and other parts of the UAE.
Ebrahim Mohammad Al Janahi, Deputy CEO of Jafza and Chief Commercial Officer of Economic Zones World, EZW, parent company of Jafza, commenting on the impressive growth in the steel sector in Jafza, said, “The remarkable growth is largely driven by robust recovery in the real estate industry and planned infrastructure projects in the UAE and other GCC countries. Expo 2020 is going to provide a further boost to the construction sector in general and steel industry in particular, across the region. Jafza accounts for almost 40% of the steel produced in the country, therefore, the growth in the sector reflects the economic resurgence in the region.” The UAE produced almost 3 million tonnes of steel in 2013.
Jafza-based Conares Steel, the second largest steel manufacturer in the country, reported growth of 40 per cent in 2013. The company expects similar growth in 2014.
Qatar Steel Company FZE reported more than 300% growth in the last five years.
Duke International, a leading player in structural steel expects to maintain a yearly growth of 20% for the next couple of years.
Nimr Steel, a leading stockist and dealer in structural steel, hopes to see a sustained double digit growth in the coming years.
Jafza based AB Metals, who is the exclusive dealer of Abu Dhabi based Al Ghurair Iron and Steel’s GI coils and sheets for the Kingdom of Saudi Arabia, expects more than 30% year on year growth in its sales in the Kingdom.